Per Capita GDP

What it is:

How it works (Example):

For example, let's assume that Country XYZ has $100 trillion in gross domestic product and 250 million people. According to the formula, Country XYZ's net GDP per capita is:Per Capita GDP = $100,000,000,000,000/250,000,000 = $400,000

Why it Matters:

Gross domestic product is a macroeconomic measure of output. This measure helps analysts and investors get a better feel for whether a country is more or less productive and in turn whether it is headed for a recession or a bull market. The per capita measure of GDP indicates whether the country's workforce is generally becoming more or less productive -- that is, whether the country's workforce is efficiently producing goods and services that consumers want.

CONTENT LIBRARY

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